|
 |
Nepal-France Relations
Political
Nepal and France established diplomatic relations on 20 April 1949. The relations between the two countries have always been marked by goodwill, trust and mutual respect. These relations have been further strengthened by occasional exchange of visits and contacts at various levels in the past.
There have been important exchanges of visits between Nepal and France. His late Majesty King Mahendra paid a State Visit to France in October 1966 on the invitation of General Charles De Gaulle, President of the Republic of France. The decision to establish residential embassies in each other's capital was taken immediately after that visit. Earlier in 1963, His late Majesty King Birendra (then Crown Prince) visited France.
In 1981, His Majesty late King Birendra accompanied by Her Majesty late Queen Aishwarya, visited Paris to address the First UN Conference on the Least Developed Countries. His Late Majesty the King addressed the Conference on behalf of nine LDCs of Asia and Pacific region. This visit took place immediately after the assumption of the French Presidency by President Mitterrand and it provided an opportunity to establish good personal rapport.
At the invitation of late His Majesty King Birendra, President Mitterrand paid a State Visit to Nepal from 2 to 3 May 1983.
In October 1989, His late Majesty King Birendra paid an unofficial visit to France en route to the State Visit to Denmark. In September 1994, Their late Majesties the King Birendra and Queen Aishwarya paid a State Visit to France, for the first time as a constitutional monarch, after the restoration of multiparty democracy in the country in 1990. This State Visit contributed to greater understanding of feelings and aspirations of the peoples and governments of both countries.
Then Deputy Prime Minister and Minister for Defence and Foreign Affairs, Madhav Kumar Nepal, visited France from 19 to 21 February 1995.
The then Prime Minister Man Mohan Adhikary visited France in the second week of April 1995 on his way back from Denmark after attending the World Summit on Social Development and met a cross-section of personalities.
At the invitation of Government of Nepal, Dr. Margie Sudre, French Minister of State for Foreign Affairs paid an official visit to Nepal in May 1996.
Then Prime Minister Girija Prasad Koirala paid an official visit to France from 5 to 9 March 2001. Discussions were held on matters of mutual interest, more particularly to enhance the scope of interactions and cooperation between the two countries. Nepal also expressed its sincere appreciations to France for its positive role in enhancing the causes of the developing and the least developed countries in the international arena.
Their Royal Highnesses Crown Prince Paras Bir Bikram Shah Dev and Crown Princess Himani Rajya Laxmi Devi Shah paid a visit to the Republic of France from March 26 to 31, 2006. During the visit His Royal Highness the Crown Prince held interactions with the businessmen and industrialists of the Paris Chamber of Commerce. The visit of Their Royal Highnesses to the Republic of France bears an especial significance in promoting bilateral economic cooperation in the field of trade and investment.
Economic Cooperation
Economic cooperation programme was initiated in February 1981 when the two countries signed the First Protocol amounting to French Franc 71.5 million. France provided food assistance (grants) to Nepal in that year. Both countries signed Seventh Protocols.
Since 1990, French assistance to the LDCs consists of grants only. The French government converted debt into grant, which matured on and after 1 January 1989. It also did the same for the French Treasury Loans granted to Nepal and disbursed before 31 December 1988.
France has extended assistance in the form of grant, treasury loan and commercial loan. This practice was followed up to the Fifth Protocol. The Sixth Protocol signed in 1991 for 50 million Francs is 100% grant in accordance with new policy of the French Government on assistance to LDC countries.
Under the Seventh Protocol, France agreed to provide French Franc 23 million to Nepal. Out of this amount, French Franc 10 million was provided in the form of grant assistance and the remaining amount was as French treasury soft loan. The grant amount was spent in extension of national seismologic network, petroleum exploration, restructuring of Water Supply Corporation and rehabilitation of airport equipment; and the loan of French Franc 13 million was spent in procuring equipment for domestic airports financed by the ADB.
Since 1980, France has been providing food aid to Nepal. Until now, France has provided 43,000 MT of food aid including 4,000 MT of soft wheat, which France had agreed to provide in March 2000. Similarly, in August 2001, an agreement has been signed between Nepal and France to provide 8,000 M.T of soft wheat to Nepal under the same programme.
France also agreed to provide ECU 0.51 million for the implementation of Gulmi and Arghakhanchi Rural Development Project. The agreement, in this respect, was signed on 3 May 1989.
Besides being member of Nepal Aid Group, France is contributing multilateral aid to developing countries through United Nations agencies and other International Organizations such as FAO, UNICEF, OECD, etc. In view of the major role being played by France in the European Union (EU), the prospects of cooperative relations between Nepal and the EU is expected to receive added impetus through excellent economic and trade relations with France.
Trade
Nepal exports pulses, incense sticks, handmade papers, carpet, handicrafts, ready-made garments, woollen goods, silver jewellery etc. to France. Similarly, Nepal imports machinery and parts, industrial raw materials, aircraft and spare parts, fertilizer, telecommunications equipment, electrical goods, scientific research equipment etc., from France.
Nepal's Trade Balance with France
| Value in Rs.'000 |
| Year |
Export |
Import |
Balance |
| 1999/2000 |
735,512 |
1,920,282 |
- 1,184,770 |
| 2000/2001 |
676,031 |
1,084,532 |
- 408,531 |
| 2001/2002 |
473,572 |
706,214 |
- 232,642 |
| 2002/2003 |
453,960 |
1,590,177 |
- 1,136,217 |
| 2003/2004 |
581,762 |
675,532 |
- 93,770 |
French Investment in Nepal
Nepal and France signed an agreement concerning "Reciprocal Promotion and Protection of Investment" in 1983. The major areas of French investment in Nepal are in the sectors of hotels, restaurants, ayurvedic medicine, fabrication of aluminium windows and doors, vehicle body building etc. Some hotels are under construction and mineral water and brick industries are licensed.
French Cultural Centre & French School
Government of Nepal and the French Embassy in Kathmandu have exchanged letters to renew the agreement on the establishment of 'Alliance Françoise de Katmandou' (the French Cultural Centre in Kathmandu) for ten more years (up to 31 June 2014).
Further, Nepal and France have signed an agreement on the conduct of the 'Ecole Françoise de Katmandou' (French School) for a period of ten years up to 01 August 2014. The School had been functioning under a written approval by Government of Nepal/Nepal since April 1989.
Scholarship
French government had been providing few scholarships in the field of public administration, diplomacy, journalism, hotel management, musicology, literature, French as a second language, etc. for the last few years. Such scholarships are not regular in recent years.
Tourism
A significant number of tourists arrive in Nepal from France each year. The following figures show the tourist arrivals from France in recent years:
| Year |
Number |
| 2001 |
21,187 |
| 2002 |
13,376 |
| 2003 |
15,865 |
| 2004 |
18,938 |
Europe America Division
Ministry of Foreign Affairs
Government of Nepal
Last updated on April 3, 2006
Back to Bilateral Relations
|
|
|
